In the initial 2020 Resolution of the Ministry of Planning and Investment, the GDP growth was forecasted to reach 6.8 percent in 2020. After the COVID-19 outbreak, the Ministry of Planning and Investment discussed two possible scenarios and its impact on the country's GDP. In the case that the coronavirus can be contained in the second quarter of 2020, the GDP was projected to increase by 6.09 percent. The ministry acknowledges that the initial GDP growth target of 6.8 percent will be a great challenge, and it is likely that the growth target will not be met.
In general, businesses and citizens expect a global and national economic slowdown. The ministry anticipates that there will a direct impact to the trade sector, the tourism sector and the logistics sector. The agriculture sector growth will be hit hardest by the virus outbreak in Vietnam due to the decreasing trade with China and the difficulties to sell agricultural produce. As many countries have not officially confirmed trade regulations and agricultural produce could not be turned into revenue, the need to preserve agricultural goods poses a great challenge. For consumer goods, consumer spending in Vietnam has increased for online services after the COVID-19 outbreak but the virus outbreak led to a decline in spending for out-of-home activities. After the ministry of health had adviced all citizens to perform mouthwash and regulary washing hands, the value for personal care products in times of COVID-19 grew significantly in Vietnam.
According to the World Health Organization (WHO), coronaviruses (CoV) are a family of viruses that can cause illness ranging from common cold to more severe diseases. It is transmitted between animals and humans. Symptoms include respiratory symptoms, fever, cough, shortness of breath, breathing difficulties and in more severe cases pneumonia, severe acute respiratory syndrome, kidney failure and even death. In order to prevent the spread of infection, the WHO recommends everyone to regular hand washing, covering mouth and nose when coughing or sneezing, thoroughly cooking meet and eggs as well as avoiding close contact with anyone showing symptoms of respiratory illness.
For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page and our Trend Whitepaper.